FY2019 Financial Results...1 1-1) Financial Highlights FY2019 Financial Results Dividend 3. Dividend per share of FY2019 will be 56 yen, which is higher by 2 yen than that of FY2018

FOR LIMITED DISTRIBUTION

関係者外秘

Financial Results

ended March 31, 2019

FY2019

Financial Results

Aim for Sustainable Growth

2. FY2019 Financial Results

3. FY2020 Financial Forecasts

[Year-on-year]

1. Financial Highlights

Table of contents



[Year-on-year]


Table of contents

1

1-1) Financial Highlights

FY2019 Financial Results

Dividend

3. Dividend per share of FY2019 will be 56 yen, which is higher by 2 yen than that of

FY2018. That of FY2020 will be also kept 56 yen.

FY2020 Financial Forecasts

1. Operating Income was lower due to Depreciation Costs increase in Japan, Start-up

Costs in North America, and Forex impact in South America in spite of Volume

increase in China and Model Mix Change in Japan.

2. Operating Income will be lower in FY2020 due to Labor Costs increase, rise in raw

material price, and working on strengthen competitive advantage for the future

even though Changes in product prices will be offset by Volume increase and

higher Cost Reduction Efforts.



[Year-on-year]


Table of contents

2

(100 million yen)

* Profit Attributable to Owners of Parent

2-1) FY2019 Financial Results

Overview of Consolidated Financial Results (JGAAP)

FY2018(JGAAP)

FY2019YOY Change

Net Sales 13,995 100.0% 14,064 100.0% 69 0.5%

Operating Income 711 5.1% 580 4.1% -131 -18.4%

Ordinary Income 728 5.2% 577 4.1% -150 -20.7%

Profit* 427 3.1% 215 1.5% -212 -49.7%

Earnings Per Share 230.27 yen 115.79 yen

Dividend Per Share 54.00 yen 56.00 yen

Exchange

Rate

USD 111 yen 111 yen -

EUR 130 yen 128 yen -2 yen (strong yen)

3

FY2018 FY2019

Total

(10,000 units)

JapanAsia &

Oceania

Europe

& Africa

The

Americas

(10,000 units)

740

+11+1.5%

+0+0.1%

-5-4.2 %

+16+7.2%

-0-0.2 %

By Region

315

116219

89

YOY ChangePct Change FY2019FY2018

2-2) FY2019 Financial Results Seat Assembly Production

751

316

111

235

89

4

2-3) FY2019 Financial Results Net Sales & Operating Income by Region

2,857

+336+4.5%

-189-6.6%

192[2.5%]

114[4.0%]

-160-83.2%

+95+83.6%

7,553

Income Variance ¥-160 (100M)

7,890

32[0.4%]

2,668

209[7.9%]

• Higher Sales due to Model Mix Change

• Lower Income due to Labor & Overhead Costs

increase and Impact of APA*

Net Sales Operating Income

(¥100M)

*[ ]Ratio to Net Sales

APA is an ahead of time agreement

between a taxpayer and a tax

authority on an appropriate transfer

pricing methodology (TPM)

Income Variance ¥+95 (100M)

YOY ChangePct Change

Net Sales Operating Income

Japan The Americas

*Advance Pricing Arrangement (APA)

• Lower Sales due to Volume decrease in North

and Forex impact in South America

• Higher Income due to Impact of APA in spite of

Start-up Costs increase

(¥100M)

FY2019FY2018

5

2-3) FY2019 Financial Results Net Sales & Operating Income by Region

+139+4.1%

-64-19.9%

3,388

324[9.6%]

-16-1.7% -1

-1.8%

1,009 80[8.0%]

3,528

259[7.4%]

992 79[8.0%]


Asia & Oceania


*[ ]Ratio to Net Sales(¥100M) YOY Change

Pct Change

Net Sales Operating Income Net Sales Operating Income

Europe & Africa

• Higher Sales due to Volume increase in China

• Lower Income due to Impact of APA in spite of

volume increase and Favorable effect by New

models

(¥100M)

• Lower Sales due to production end of some models

• Income is about same level due to Model Mix

Change and Cost Reduction Efforts in spite of

Volume decrease

FY2019FY2018

6

2-4) FY2019 Financial Results Operating Income Variance Analysis

FY2018 FY2019

580

+52

+165

-146

-25

-72

-143

+38711

+0

Operating Income -131(-18.4%)

Volume

Increase

(100 million yen)

Model &

Product Mix

New

Models

(Value

enhancement) Changes in

Product

Prices

Increased

Overhead

Costs

Cost

Reduction

Efforts

FOREX Others

Production Factor +18 Effort to Offset -124


3. FY2020 Financial Forecast

[Year-on-year]


Table of contents

7

(100 million yen)

* Profit Attributable to Owners of Parent

3-1) FY2020 Financial Forecasts

FY2020 Consolidated Financial Forecasts

TOYOTA BOSHOKU CORPORATION adopts IFRS to the group consolidated financial statement from FY2020.

(JGAAP)

FY2019

(IFRS)

FY2020YOY Change

Net Sales 14,064 100.0% 13,900 100.0% -164 -1.2%

Operating Income 580 4.1% 530 3.8% -50 -8.7%

Ordinary Income 577 4.1% - - - -

Profit* 215 1.5% 290 2.1% 74 34.9%

Earnings Per Share 115.79 yen 156.16 yen

Dividend Per Share 56.00 yen 56.00 yen

Exchange

Rate

USD 111 yen 110 yen -1 yen (strong yen)

EUR 128 yen 125 yen -3 yen (strong yen)

8

3-2) FY2020 Financial Forecasts Seat Assembly Production

+24+3.2%

751775

+5+1.5%

+21+19.1%

+4+1.5%

-5-6.0%

316

133111

238

84

235

89

320

Total By Region

(10,000 Units) (10,000 Units)

FY2019 FY2020 Japan The

Americas

Asia &

Oceania

Europe

& Africa

YOY ChangePct Change FY2020FY2019

9

3-3) FY2020 Financial Forecasts Net Sales & Operating Income by Region

2,6683,000

+331+12.4%

32[0.4%]

110[1.5%] 40

[1.3%]

209[7.9%]

+77+240.8%

-169-80.9%

7,4007,890

Income Variance ¥+77(100M)

-490-6.2%

• Higher Sales due to Volume increase in North

America

• Lower Income due to Start-up Costs increase and

Impact of APA

• Lower Sales due to Model Mix Change

• Higher Income due to Impact of APA * in spite of

Overhead Costs increase for strengthen competitive

advantage


(¥100M)

*[ ]Ratio to Net Sales

APA is an ahead of time agreement

between a taxpayer and a tax

authority on an appropriate transfer

pricing methodology (TPM) FY2020

(IFRS)

FY2019

(JGAAP)



*Advance Pricing Arrangement (APA)

(¥100M)

Japan The Americas

10

3-3) FY2020 Financial Forecasts Net Sales & Operating Income by Region

-28-0.8%

-92-9.3%

-29-36.8%

+70+27.1%

3,5283,500

259[7.4%]

330[9.4%]

79[8.0%]

50[5.6%]

992900

• Lower Sales due to Volume decrease

• Lower Income due to Volume decrease and

Overhead Costs increase

Income Variance ¥+70(100M)

*[ ]Ratio to Net Sales(¥100M) (¥100M)




FY2020

(IFRS)

FY2019

(JGAAP)

• Lower Sales due to Volume decrease in Thailand and

Model Mix Change in spite of Volume increase in China

• Higher Income due to Impact of APA in spite of Volume

decrease and Start-up Costs increase

Asia & Oceania Europe & Africa

11

3-4) FY2020 Financial Forecasts Operating Income Variance Analysis

520

+56

+180

-166

-1

-27

-111

+9580

+10 530(JGAAP) (IFRS)

Change of Depreciation

(fixed-rate method

→straight-line method) etc.

Operating Income -50 (-8.7%)

Production Factor +38 Effort to Offset -97

Volume

Increase

Model &

Product Mix

New

Models

(Value

enhancement)

Changes in

Product

Prices

Increased

Overhead

Costs

Cost

Reduction

Efforts

FOREX

(100 million yen)

FY2019actual

FY2020Forecasts

IFRS

adjustment

12

Net Sales

Operating Income

(100 million yen)

(100 million yen)

3-5) FY2020 Financial Forecasts by Half Year

FY2020

1st Half 2nd Half Full Year

Japan 3,850 3,550 7,400

The Americas 1,500 1,500 3,000

Asia & Oceania 1,750 1,750 3,500

Europe & Africa 450 450 900

Consolidation 7,100 6,800 13,900

FY2020

1st Half 2nd Half Full Year

Japan 65 1.7% 45 1.3% 110 1.5%

The Americas 10 0.7% 30 2.0% 40 1.3%

Asia & Oceania 165 9.4% 165 9.4% 330 9.4%

Europe & Africa 20 4.4% 30 6.7% 50 5.6%

Consolidation 260 3.7% 270 4.0% 530 3.8%

・In FY2019, we plan to pay an annual per-share dividend of ¥56, which is ¥2 higher

than in FY2018.

・In FY2020, our annual per-share dividend payout plan is ¥56 as well as in FY2019.

Dividend, Operating Income, & Profit Attributable to Owners of the Parent Trends

13

3-6) FY2020 Financial Forecasts Returning to Shareholders

9 915

21 25 28 289 9

15

2929 28 28

12652

39

453 427

215290

288 323594

719 711

580 530

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020(Fcst)

Dividend ( \ )

Operating Income (100 million yen)

Profit attributable to owners of the parent (100 million yen)

18

50

30

18

5654 56

FY-end

Interim

Financial Performance

Aim for Sustainable Growth

1. Review of 2020 Management Plan

2. Initiatives toward Sustainable Growth

Table of contents

1. Review of 2020 Management Plan


関係者外秘

14

Actions in Mid-term Business Implementation Plan Business tasks Operating income

I. Enhance fundamental capabilities in

manufacturing

II. Strengthen profit structure

1. Reduce losses in production preparation

2. Improve quality and productivity

3. Reduce design changes

1. Develop time and space,

including control

FY2021

V. Develop new technologies and new

products toward 2030

III. Establish business foundation for

Global New Customer business

Rei

nfo

rce

exis

tin

g c

ore

bu

sin

esse

sP

rom

ote

new

bu

sin

esse

s

Improve profitability of existing businesses and implement investments for future growth

Predict changes in social needs, accelerate measures to create new value, and secure

growth opportunities

FY2026

1. Improve product added value

2. Increase new orders and expand

business fields

1. Commercialize new products in unit

components business

2. Compact car business for emerging

markets

3. Promote aircraft seat business

70

billion

90 to

100 billion

yen

FY2026

10 to

20 billion yen

+α

Review of 2020 Management Plan

+α

FY2031IV. Manufacturing innovations toward

2030

1. Manufacturing

evolution/innovations


関係者外秘Review of 2020 Management Plan

15

Item visionFY2019

Actual

FY2020

Forecast

2020 management targets

FY2020 FY2021

Net Sales 1,406.4 billion yen 1,390.0 billion yen 1,370.0 billion yen 1,400.0 billion yen

Operating income 58.0 billion yen 53.0 billion yen 66.0 billion yen 70.0 billion yen

Operating margin

Steadily maintain

5% or higher 4.1% 3.8% 4.8% 5.0%

Net asset 400.0 billion yen 313.0 billion yen -

Equity ratio Around 40% 36.7% 38.2%

ROE Around 10% 8.0% 10.2%

Dividend payout ratio 30% 48.4% 35.9%

Capital expenditures Cumulative FY2019-21 ¥180.0 billion (FY2019 actual: ¥64.6 billion)

R&D expenses Cumulative FY2019-21 ¥140.0 billion (FY2019 actual: ¥47.2 billion)

Improvement

according to the Plan

Net sales, equity ratio, ROE, and dividend payout ratio have improved according to

the Plan while operating income has not reached the target.

FY2020

management

target

(100 million yen)

-80±0

GAP -130

-60660600

520 +10 530

Base line FY2020

forecast

(Japanese standard)

FY2020

forecast

(IFRS)

Decrease in cost

reduction &

increase in overhead

expenses

Others

Exchange

rates

IFRS

adjustment

16

Review of 2020 Management Plan (environmental changes and new tasks)

A

A: Environmental changes (impacts of model mix change and rise in

raw materials costs)

Gap between FY2020 management target and forecast

Environmental changes

Model mix change

Rise in raw materials

prices

a) Promote cost reduction activities beyond the framework of current activites

b) Accelerate the creation of a global management foundation


関係者外秘

-5%

5%

15%

25%

35%

45%

55%

65%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

'10 '11 '12 '13 '14 '15 '16 '17 '18

1

100 123

195

All imports

(a) Soaring nylon raw materials prices

Polypropylene

Kenaf

Rise in raw

materials costs

Around 70%

(b) Cost composition rate of kenaf board*

Soaring materials prices due to

shortage in supply of nylon raw

materials

About double in two years

Ratio of raw materials costs to selling prices

Raw

materials

costs

Board price

Ratio of raw materials costs to total costs

Based on 2016 figure as 100 (case of 66 nylon)

A-a) Measures to reduce raw materials costs

* Kenaf board: used mainly as the base material for

door trims (produced in Indonesia)

Environmental Changes and New Tasks Interior & exterior and unit components businesses

17

100

134Based on 2010 figure as 100

2017 2018 2019 (FY)


関係者外秘

(1) Switch to low-cost, proper-grade materials (unit components)

Annual plant excellent in CO2 absorption

From 2003

Commercialized in Indonesia from seeding to board

production

Kenaf fiber

(2) Promote local procurement including constituent materials (interior & exterior parts,

kenaf base materials)

KenafBroadleafConifer

About 7 times

CO2 absorption capacity

<Reduction effect>

Local

procurement

Present Future

-15% -30%

What is kenaf?

Kenaf board

Production in Indonesia

Polypropylene fiber

Local procurement

in IndonesiaImported

Expansion of Kenaf

products

Environmental Changes and New Tasks

18

Cylinder head cover Intake manifold

Base material for seat

back board

Base material for

door trims


Base material for

package trays

Interior & exterior and unit components businesses


関係者外秘Environmental Changes and New Tasks Procurement area

19


Review appearance quality standards

with customer design/quality control

representatives

Reduced repair processes

(wasteful processes)

Promote activities in cooperation with suppliers

<Reviewing appearance

quality standards> <Cost reduction by bulk order of resin materials>

Spraying to repair

appearance defect

内製支給外製

201920152009

[Cost]

[Changes in

purchase volume]

12600 t1000 t

-10%

Reducing costs by scale advantage and

securing stable supply

Internal

productionSupplied

External

production

Waste Quantity

Waste in materials costs (paint) 26 g/piece

Waste in man-hours (reserving/application) 33 sec./piece

Waste in space (booth) 3×3m


関係者外秘

Enhance business management capability by expediting decision

making and increasing operation efficiency

(a) Strengthen global headquarters functions and improve productivity

(b) Innovation of vibrant work style

Use of IT tools Office reform

TeleworkEnhance human

resources systems

Advance management control (integrate corporate functions)

(3) Strengthen management control by enhancing management control systems

(2) Strengthen global governance

(c) Promote TQM*2 activities

Improved employee satisfaction,

improved productivity

(1) Share management information in a timely manner

Expedite decision making


*2 Total Quality Management: A management approach to improve efficiency in development and provision of

products and services, in response to diversifying customer needs and changing business environment

20

Establish frameworks to improve work quality

(5) Enhance regional, business, and external ties

(4) Transformation from CSR-based to CSV*1-based management

A-b) Accelerate the creation of a global management foundation

*1 CSV: Creating Shared Value


関係者外秘Environmental Changes and New Tasks

21


(4) Transformation from CSR to CSV management

<Actions>

Review KPI control items from ESG/SDGs perspectives

Incorporate strategies to overcome challenges into next management

plan

Aim to enhance corporate value by contributing to realization of

sustainable society

Priority Sustainable

Development Goals

(draft)



22


Productivity improvement

Review work

Improve workstyleEnhance

human

resources

systems

Led by

officersUse of IT

Office

reform

High-quality instructions and dialogues between supervisors and subordinates

(Communication)

<Overview of activities (birds-eye view)>

<Actions>

Office reform

“Connectable at any time, anywhere, with any one”Realize more flexible and efficient workstyle

IT toolsTelework [from FY2020]

Establish

environment Paperless(4S of paper documents,

replacement with electronic data)

[From FY2018]

<Specific effects/advantages>

(1) Improved work efficiency (2) Improved work-life balance / human resources secured

(3) Ability to respond to emergencies (4) Reduced environmental

burdens

• Reduction of CO2 in

commuting or traveling

• Response to disasters and pandemics

・ Effective use of time

・ Reduce wasteful moves

・ Paperless

• Improved work-life balance Support for women’s career

development by balancing work

with child/nursing care

- - - Positive responses: 87%


- - - Trips between sites: -50%

- - - Paper printing: -68%

(b) Innovation of vibrant work style

Results of approx. 200 members of 4 departments in the corporate segment from July to Dec. 2018



関係者外秘

Reduce losses, improve efficiency

Improve work quality

Reduce costs

Improve profitsDeming

Prize

Realize VisionLooking into the future, we will create tomorrow’s

automobile interior spaces that will inspire our

customers the world over

People

Organization

Process

TQM

Philosophy

Participation

by all

members

Customer firstContinuous

improvement

Sprit of

Sakichi

Toyoda

Become

single-minded

For society

and

for people

work honestly

and steadily

To acquire capabilities of

“Organization” “Process” “People”which are necessary to achieve sustainable growth

utilize TQM to improve the work quality of all employees

23

Deming Prize: An annual prize awarded to companies that

implement TQM and have achieved remarkable effects.

*2

Recognition of TQM

Achivement

Nov. 2018

Kariya Plant, Sanage Plant

received “Recognition of TQM

Achivement”


A-b) Accelerate the development of a global management foundation

(c) Promote TQM* activities*Total Quality Management

B: Decrease in cost reduction and increase in overhead expenses

FY2020

management

target

(100 million yen)

-80±0

GAP -130

-60660600

520 +10 530

Base line FY2020

forecast

(Japanese standard)

FY2020

forecast

(IFRS)

Environmental

changes

Model mix change

Rise in materials

prices

Decrease in cost

reduction &

increase in

overhead expenses

Others

Exchange

rates

IFRS

adjustment

24

Review of 2020 Management Plan (environmental changes and new tasks)

B

➡ Response to new challenges in implementing the action plan for existing

core businesses

➡ Increase in prior investments to strenghen competitive advantage

Gap between FY2020 management target and forecast



Rebuilding the optimal production system to realize global

product business strategies

Aim

(Avoid loss of opportunities by improving

production flexibility)

3) Optimizing global logistics

► Separate concentrated

production and JIT

production to improve

efficiency

Reforming production

style

2) Streamlining supply chains and

shortening production lead time to

eliminate loss costs

► Production technology

innovation to support

optimal production

1) Response to customer demand fluctuations

(Embody IoT and process

innovation)

► Consolidate production

sites

(Reorganize by region)

Seat business

25

Seat business strategy: Reinforce existing core businesses


関係者外秘Environmental Changes and New Tasks Seat business

Separate concentrated production and JIT production to improve efficiency

Toyo

ta

Bo

sho

ku

Aisin

Shiroki

Integrate development after merger of businesses of

Aisin Seiki and Shiroki Corporation

Toyo

ta B

osh

oku

3 types of recliners

Lower arms

Front slide rails

Realize concentrated production through reduction and integration of types

26

Integrated seat development

(1) Standardization of front and

rear frameworks• Reduction by front frame type

Cushion: Approx. 70% reduced

Back: Approx. 15% reduced

• Integrating rear framePrepared for each model → Integrated into 4 types

(2) Integration of devices• Integrated reclining (3 types → 1 type)

• Integrated slide rail (all individual

model-based components abolished)

• Motor with gear

(sedan, hatchback, SUV, MPV)



Rebuilding optimal seat production and supply

FY2020 [current situation] From FY2021

Optimal production and supply realized globally

Seat assembly

JIT

Device

Pad

CoverDevice

Seat assembly

JIT

Frame

Device

Pad

Seat assembly

JIT

Frame

Device

Device

Seat assembly

JIT

Frame

DevicePad

Device

Complicated production structure gives

difficulty to response to customer body

rotation, etc.

Cover

Frame

Device

Cover

Pad

27

Device

Cover

JIT

JIT

JIT

JIT

FramePad

FramePad

Seat business



Case: Seat assembly process

On-site information: Collection and monitoring

On-site information: Analysis and use

Indication maintenanceIndication quality Operation status

Indication

management

Response to production factors

Data analysis and use

Production

optimization

simulation Plan after review

Indication

quality

Indication

maintenance

Visualization of operation

Monitoring line stop trends

Deploy at model plants

Deploy at plants in JapanFY2020 [current situation]From FY2021

28

Accelerate quick decision and prevent equipment failure/quality problems by using on-site data

Production technology innovation to support optimal production Embody IoT

Seat business



Case: Seat assembly process

■ Automatic appearance quality inspection

Full automation of inspection processes

■ Checking wrong or missing parts for seats

Realizing low labor and high quality

・ Wrinkles

・ Dirt

・ Thread, etc.

(1) Setting parts

(4) Transportation

(2) Assembly

(3) Inspection

Full automation of welding processes ((1) through (4))

Automatic inspection Automatic transport

Realizing low labor and high productivity

Seat business

FY2020 [current situation] From FY2021

29

Production technology innovation to support optimal productionPromote process

innovation

Promote automation to ensure lower costs and higher maintenance skills


関係者外秘Environmental Changes and New Tasks Seat business

30

Line adjustment according to production volume and

introduction of automation by area

<Develop standard production processes resistant to quantity fluctuations>

Promote automation mainly in Japan, North America, and China, taking into

consideration the return on investment and regional characteristics

<Promoting automation by region>

Process 50,000 units/year 200,000 units/yearResponse to quantity

fluctuations

WeldingCombination of

standard modules

Device(Integrated

reclining)

Combination of standard

modules

Seat

assemblyAdjusting with

process length

Jig JigWelding robot: 1 unit Transportation robot: 1 unit

Welding robot: 2 units

800 mm 800 mm

組立かしめ検査梱包

A B C DModule

Semi-

assembly


A B C DModule


A B C DCaulking


A B C DInspection


A B C DModule

Packaging

Module Module

Standard module line: 1 line Standard module line: 4 lines

Inspection Main assembly

Quantity fluctuations: Adjust before and

after the main assembly process

Standard modules

50,000 units/year

200,000 units/year

By production volume: Adjust with the

length of production line

Standard module lineSemi-

assembly



◆ Production restructuring

◆ Distribution restructuring

Profit issues

Market/customer trends

1) Response to diversifying demand fluctuations

2) Response to social issues (CO2 emissions,

shortage in drivers)Product business

strategies

2019 2021 2026

<Target number of plants>

2019 2021 2026

<Distribution cost

reduction target>

Streamlining appropriate for

production volume

Concentrate production

taking advantage of

economies of scale

with partners

Global logistics

Implement KPI

management

(FY2021)

Significant reduction of

fixed costs and

distribution costs

Tohoku regionTokai region

Kanto region

Kyushu region

Outline of plant concentration

0

Changes in number of plants

Significant reduction of expenses by

restructuring of distribution in line

with plant concentration

Businesses in Japan

31

(FY)

(FY)

Case: Restructuring

production/distribution in Japan region<Actions>

-30%

-30%

-30%

(FY2019 → FY2026)

2. Initiatives toward Sustainable Growth


関係者外秘

32







manufacturing






including control

FY2021





Rei

nfo

rce

exis

tin

g c

ore

bu

sin

esse

sP

rom

ote

new

bu

sin

esse

s

FY2026



business fields


components business


markets


70

billion

90 to

100 billion

yen

FY2026

10 to

20 billion yen

+α

+α


2030

1. Manufacturing



関係者外秘

33







manufacturing






including control

FY2021





Rei

nfo

rce

exis

tin

g c

ore

bu

sin

esse

sP

rom

ote

new

bu

sin

esse

s

FY2026



business fields


components business


markets


70

billion

90 to

100 billion

yen

FY2026

10 to

20 billion yen

+α

+α


2030

1. Manufacturing


FY2018Result

FY2019Current

FY2020Mid-term

plan target

FY2020Current

FY2021Mid-term

plan target

FY2021Current

FY2022Current

・・・ FY2026Current

Initiatives toward Sustainable Growth

Existing business sales expansion• Completed setting of good and reasonably priced items for

after-sale market (FY2019)

• Non-Toyota customers increased

(Decided to use Miyagi Plant as the unit components base)

Lithium-ion secondary batteries

Cooling circulating water purification system

• Sample shipment started for supercar

manufacturers (from FY2019)

• Set pilot lines to confirm profitability

of small-quantity production (by end

of FY2020)

• Limited sales start (from FY2020)

III-1. Commercialize new products in unit components business

New business sales expansion•For FC (separators, etc.: orders

received)

•For electric (motor core, etc.:

orders received)

New

bu

sin

esse

sE

xist

ing

bu

sin

esse

s

Unit components business

34

1. Target of products for compactcars in emerging markets

2. Cost and quantitative targets

Quantitative targetCost target

Development of products for compact vehicles in emerging markets almost completed

(seat frames, devices, interior decorations, light-weight unit compoents, etc.)

Current Target Current Target

Achieve targets toward FY2023 in phases

3. Development of products exclusively for emerging markets

Cost-productive products

Pro

du

ct

dev

elo

pm

ent

[Seats]

[Unit components]-35% -20%

(Front)(Rear)

(Recliner)

(Slide rail)

(Light-weight air cleaner)

A B C D E FVehicle class (segment)

Ap

plic

able

co

un

trie

s

Develop products that satisfy needs of specific region/vehicle class

Jap

anA

sia

(Metallic

decoration) (Simple

coupling)

[Interior/exterior]

<Frames> <Devices>

EU

-NA

For emerging markets

TNGA

35

Initiatives toward Sustainable Growth Promoting new businesses

III-2. Compact car business for emerging markets

4. Establishing sales expansion structure in emerging countries

By using TB bases operating in emerging countries and enhancing sales bases, expansion

of sales to various car manufacturers planned (setting up office in Gurgaon, India)

India Thailand

Taiwan

Indonesia

Malaysia

PakistanVietnam

Philippines

Gurgaon

Office

◎: Regional Management & Collabration Hub

★: Toyota Boshoku base

Regional

Management &

Collabration Hub

Aiming for steady orders from India

and ASEAN by FY2026

May 2019

Initiatives toward Sustainable Growth Promoting new businesses

36

III-2. Compact car business for emerging markets

Total volume forecast for

emerging countriesTB sales targets

Present FY2026 Present FY2026FY2023FY2023

Up 23% Up 15%

https://www.google.com/url?q=http://freesozai.jp/itemList.php?category=nation_flag&page=ntf_148&type=sozai&sa=U&ved=0ahUKEwjejfypseXWAhXGVrwKHQwfBe4QFggEMAA&client=internal-uds-cse&usg=AOvVaw0sstKBITCpPg-ZHxahoD_E


関係者外秘Initiatives toward Sustainable Growth Production engineering field

37

High technical capability

Improve production efficiency

Production optimization

Harmonized with the Earth

Trend forecast

creating jobsImprove production

efficiency

Production optimization

Harmonized with the Earth

Safe products Safe workplace

Offer the joy of creation

Car manufacturer

α

Ongoing activities

Planned activities

IV-1. Manufacturing evolution

Effects being verified through trial mounting and application in model lines


関係者外秘

Aiming to become an interior space creator leading new space value creation2020 2025 2030

Lv5Lv2 Lv3 Lv4

■ Enhance R&D capabilities ■ Strengthen production and capabilities

■ Develop human resources ■ Enhance management infrastructure

2018

Eliminate existing problems

Expansion of CASE

Fiercer competition MaaS

Comfortable, human-friendly space

Ride ShareShared CarOwner Car

Space that makes moving fun while constantly watching

Transformable space free from driving

Expand development fields

• Personal air conditioning and active driver engagement system

• Seat-incorporated safety belt

■ Supplier covering from material development to assembly

<What we have achieved>

<Step 1> Enhance advanced development (strengthen collaboration within Group)


<Actions from now on>

System supplier that manages entire interior space<Step 2>

38

<Step 3>

V-1. Develop time and space, including control

Interior space creator (in response to MaaS)


関係者外秘

39

•Active driver engagement systemDetects drowsiness with a camera and seat sensor, and keeps the driver awake with

vibration/music

•Personal air conditioner systemDetects body temperature with a camera and seat sensor, providing a comfortable climate with

optimal air conditioning

• Physique & Posture Detection and Automatic Adjustment

Detects posture and physique with a camera and seat sensor, optimizing the seat position, etc.

• Emotion-linked interior

Captures emotion from voice and with a camera, improving comfort with lighting and fragrance

Value offered:

Optimal safety and comfort appropriate for the condition of person

Space concept:

Space that makes moving fun while constantly watching

Offering an interior space in view of autonomous driving (CES2019)




関係者外秘

+

Seat sensor

Camera

Heart rate information Nostalgic

music

Seat vibration

Hearing

Detecting physical information

→ Estimating a conditionInducing a state

Adding eyelid information to improve

estimation accuracy

vibrotactile

In-vehicle verification of the Active Driver Engagement System under way

+


40


Human-centered system: detects physical information estimates condition induces a state

Drowsiness estimation accuracy improved with information from eyelids, the world’s first

comfortable keep-awake algorithm based on interaction of hearing and vibrotactile stimulations

Interaction of five sensesSelecting nostalgic music and vibration to arouse

comfortable emotion


関係者外秘

Continuing to promote “human-centered” development

FY2019FY2018


41

What’s next ?

Coming soon!

Evolution of Aces + MOOX?



関係者外秘

What’s next ?

Coming soon!

Seats

UnitsHMI

Camera,

sensor

Air conditionerElectronic

control

Instrument

panels

Interior

Safety

To realize a space that provides new values,

accelerate collaboration with companies having necessary technologies


42

Evolution of Aces + MOOX?

Becoming an interior space creator


Area requiring enhancement of

collaboration with other companies

Area requiring enhancement of

proprietary technologies

Finally

Achieve 2020 Management

Plan targets

Enhance earning power

through all-out cost reduction

efforts, to strengthen

business structure

Promote creation of new

value

for future growth

Reorganize production structure in Japan

Embody IoT and promote process innovation

Lead creation of comfort value in mobilespaces

Rebuild optimal global production/supply structures

Securing operating margin of 5%

Improve work quality by promoting TQM activities

Prepare for capturing business chances securely in growth markets

Commercialize new technologies and new products

Reduce fixed costs and optimize allocation of resources

43

Realize sustainable growth

Disclaimer

The forecasts relating to future business performance provided in this report are estimates

made by the Company based on the information available at the time of reporting, and

therefore involve risks and uncertainties.

Accordingly, actual results may differ from the forecasts due to various factors.

Key Indicators (FY2020 is based on IFRS)

(1) Seat Assembly Production

(100 million yen)

(10,000 units)

(2) Net Sales

1) Key Indicators Seat Assembly Production & Net Sales(FY2020 is based on IFRS)

586 596

690 707 712 709 726 740 751 775

0

200

400

600

800

1,000

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020(Forecast)

FY2021(Forecast)

FY2026(Forecast)

9,837 9,642 10,794

12,183 13,055

14,157 13,579 13,995 14,064 13,900

0

6,000

12,000

18,000

10年度 11年度 12年度 13年度 14年度 15年度 16年度 17年度 18年度 19年度（予） 20年度（予） 25年度（予）FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

(Forecast)

FY2021

(Forecast)

FY2026

(Forecast)

368

209 253 288 323

594

719 711

580 530

3.7%

2.2% 2.3% 2.4% 2.5%

4.2%

5.3% 5.1%

4.1%3.8%

0.0%

2.5%

5.0%

7.5%

10.0%

0

200

400

600

800

1,000

10年度 11年度 12年度 13年度 14年度 15年度 16年度 17年度 18年度 19年度（予） 20年度（予） 25年度（予）

114

32

157 126

52 39

453 427

215

290

1.2%

0.3%

1.5%1.0%

0.4%0.8%

4.0%3.6%

1.5%2.1%

0.0%

2.5%

5.0%

7.5%

10.0%

0

200

400

600

800

10年度 11年度 12年度 13年度 14年度 15年度 16年度 17年度 18年度 19年度（予） 20年度（予） 25年度（予）

(1) Operating profit(100 million yen)

(100 million yen) (2) Profit

Operating

margin

2) Key Indicators Operating Income & Profit (FY2020 and subsequent years are based on IFRS)

Profit margin

Streamlining of

businesses, etc.

-321

Fixed assets

Impairment

losses, etc.

-162

Fixed assets

Impairment

losses, etc.

-48

Recovery in sales in

the Americas

The Great

East Japan

Earthquake

-32

Efforts to strengthen

competitive

advantage

Restructuring of

Europe businesses

Restructuring of

Europe businesses

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

(Forecast)

FY2021

(Forecast)

FY2026

(Forecast)

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

(Forecast)

FY2021

(Forecast)

FY2026

(Forecast)

1,969 1,903 2,207 2,490 2,640 2,431 2,762 3,086 3,130

3,074

4,073 3,632 4,099

4,556 4,827 4,156 4,359 4,392

32.7% 26.9% 32.1% 31.4%30.0% 27.3%

33.3%35.3% 36.7%

15.0%

35.0%

55.0%

75.0%

95.0%

0

6,000

12,000


FY2021(Forecast)

FY2026(Forecast)

(1) Total assets

(100 million yen)

(100 million yen)

(2) Liabilities and Net assets

3) Key Indicators Balance Sheet

Liab

ilitie

sN

et a

sset

Equity ratio

5,044

5,976 5,839 6,590

7,196 7,258 6,919 7,445 7,522

0

6,000

12,000


FY2021(Forecast)

FY2026(Forecast)

254

237 263317 338

233162

295

402

215

101

105

96

183158

138 105

194 163

135 92

120

148

212

323 315 327363

401 410362

347382 360

412 375368

511 501

368 355

520

0

200

400

600

800


IFRS

FY2021(Forecast)

IFRS

その他

成長投資

新製品

(1) Capital expenditures, depreciation costs

(100 million yen)

(100 million yen)

4) Key Indicators Capital expenditures, depreciation costs, R&D expenses

(2) R&D expenses

Dep

reci

atio

n co

sts

Cap

ital

expe

nditu

res

610646

324 325363

401 388 384 378

473 472 470

0

200

400

600


FY2021(Forecast)

成長戦略

Other

Growth investments

New products

Growth strategies

606

469

444 495

655

789 953

861

641

-404

-761

58

-518 -516 -480 -489 -517

-617

202

(292)

502

(23)

139

309

464

344

24

-800

-400

0

400

800

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 (Forecast)

(1) Free cash flow

(100 million yen)

(100 million yen)

(2) Financial cash flow

5) Key Indicators Free cash flow and financial cash flow

Ope

ratin

g C

F

IInv

estin

g C

F

Fre

e C

F

-153

307

-419

-56

5

-87

-613

-35 -195

-800

-400

0

400

800

10年度 11年度 12年度 13年度 14年度 15年度 16年度 17年度 18年度FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

(2) Total cash flows(100 million yen)

(100 million yen)Cash and Cash Equivalents

6) Key Indicators Cash and Cash Equivalents, Cash Flow Statement

1,139 1,139

1,293 1,266

1,434

1,609

1,448

1,783

1,581

0

500

1,000

1,500

2,000

10年度 11年度 12年度 13年度 14年度 15年度 16年度 17年度 18年度

10年度 11年度 12年度 13年度 14年度 15年度 16年度 17年度 18年度

キャッシュ・フロー営業活動 606 469 444 495 655 789 953 861 641

増減額投資活動 △ 404 △ 761 58 △ 518 △ 516 △ 480 △ 489 △ 517 △ 617

財務活動 △ 153 307 △ 419 △ 56 5 △ 87 △ 613 △ 35 △ 195

その他 △ 39 △ 15 70 52 24 △ 46 △ 11 26 △ 29

8 △ 0 153 △ 26 168 174 △ 160 335 △ 201

1,131 1,139 1,139 1,293 1,266 1,434 1,609 1,448 1,783

1,139 1,139 1,293 1,266 1,434 1,609 1,448 1,783 1,581

現金及び現金同等物期首残高

現金及び現金同等物期末残高

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Cash flow varianceOperating

activitiesInvestment

activitiesFinancial

activities

Others

Cash and cash equivalents BB

Cash and cash equivalents EB

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019FY2020

(Forecast)

Earnings Per

Share61.82 yen 17.45 yen 85.23 yen 68.05 yen 28.08 yen 21.02 yen

244.28

yen

230.27

yen

115.79

yen

156.16

yen

Dividend Per

Share16 yen 16 yen 18 yen 18 yen 18 yen 30 yen 50 yen 54 yen 56 yen 56 yen

Operating

margin3.7% 2.2% 2.3% 2.4% 2.5% 4.2% 5.3% 5.1% 4.1% 3.8%

Equity ratio 32.7% 26.9% 32.1% 31.4% 30.0% 27.3% 33.3% 35.3% 36.7% 38.2%

ROE 7.0% 2.0% 9.1% 6.4% 2.5% 1.9% 21.2% 17.3% 8.0% 10.2%

Dividend

payout ratio25.9% 91.7% 21.1% 26.5% 64.1% 142.7% 20.5% 23.5% 48.4% 35.9%

7) Key Indicators (FY2020 is based on IFRS)

Disclaimer

The forecasts relating to future business performance provided in this report are estimates

made by the Company based on the information available at the time of reporting, and

therefore involve risks and uncertainties.

Accordingly, actual results may differ from the forecasts due to various factors.

Documents

FY2019 Financial Results...1 1-1) Financial Highlights FY2019 Financial Results Dividend 3. Dividend per share of FY2019 will be 56 yen, which is higher by 2 yen than that of FY2018